New Oriental Announces Results for the Fourth Fiscal Quarter and the Fiscal Year Ended May 31, 2026
Rhea-AI Summary
New Oriental (NYSE: EDU; SEHK: 9901) reported unaudited results for 4Q and FY2026 ended May 31, 2026. 4Q net revenues rose 23.0% year over year to US$1,529.5 million, with operating income improving to US$85.8 million from a loss, and net income attributable to the company surging 775.8% to US$62.2 million. Non-GAAP operating income grew 34.7% to US$110.0 million, while non-GAAP net income declined 10.5% to US$87.8 million.
For FY2026, net revenues increased 15.5% to US$5,661.3 million, operating income rose 50.2% to US$643.3 million, and net income attributable to the company grew 27.8% to US$475.2 million. Non-GAAP operating margin expanded from 11.3% to 13.0%. The company ended the year with US$1,821.2 million in cash and cash equivalents, plus substantial term deposits and short-term investments, and deferred revenue of US$2,242.9 million, up 14.8%.
New Oriental highlighted strong growth in adult and university test preparation, new educational initiatives, and East Buy’s performance, alongside cost-efficiency gains and AI-driven enhancements.
Positive
- 4Q FY2026 net revenues up 23.0% year over year to US$1,529.5 million
- 4Q operating result swung to US$85.8 million income from US$8.7 million loss
- FY2026 net revenues increased 15.5% year over year to US$5,661.3 million
- FY2026 operating income up 50.2% to US$643.3 million
- FY2026 non-GAAP operating margin expanded from 11.3% to 13.0% (170 bps)
- FY2027 shareholder returns include about US$300 million dividends and up to US$200 million buybacks
Negative
- 4Q FY2026 non-GAAP net income declined 10.5% year over year to US$87.8 million
- 4Q FY2026 cost of revenues rose 25.9% year over year to US$717.3 million
- 4Q FY2026 selling and marketing expenses increased 23.9% to US$262.5 million
News Explained
The FY2027 plan sets about US$300 million for dividends and permits another US$200 million of repurchases, but timing and execution remain partly open.
New Oriental says its board approved FY2027 shareholder returns: an expected cash dividend of approximately
The FY2026 dividend installments have been fully paid, while the FY2026 repurchase program had bought approximately
Although the release labels both FY2027 measures shareholder returns, the dividend amount is still described as expected with details pending, and the repurchase figure is a maximum authorization rather than a stated cash outlay.
The next specified dividend payments are planned for
News Market Reaction – EDU
In the Jul 29 session, EDU gained 15.34%, reflecting a significant positive market reaction. Argus tracked a peak move of +12.1% during that session. Our momentum scanner triggered 66 alerts that day, indicating high trading interest and price volatility. Trading volume was above average at 1.7x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 30 | Earnings date notice | Neutral | -0.6% | Announced July 29 release date and conference call details for fourth-quarter results |
| Apr 22 | Third-quarter earnings | Positive | -2.9% | Reported revenue and operating-income growth alongside improved margin and shareholder returns |
| Mar 31 | Earnings date notice | Neutral | +3.5% | Announced April 22 reporting date and conference call access details |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The recent record included a divergence after strong Q3 results, which were followed by a -2.89% reaction.
Key Terms
non-gaap financial
ads financial
deferred revenue financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Financial Highlights for the Fourth Fiscal Quarter Ended May 31, 2026
- Total net revenues increased by
23.0% year over year toUS for the fourth fiscal quarter of 2026.$1,529.5 million - Operating income increased to
US for the fourth fiscal quarter of 2026, compared to an operating loss of$85.8 million US in the prior-year period.$8.7 million - Net income attributable to New Oriental increased by
775.8% year over year toUS for the fourth fiscal quarter of 2026.$62.2 million
Key Financial Results
(in thousands US$, except per ADS(1) data) | 4Q FY2026 | 4Q FY2025 | % of | |
Net revenues | 1,529,532 | 1,243,155 | 23.0 % | |
Operating income/(loss) | 85,797 | (8,674) | 1,089.1 % | |
Non-GAAP operating income (2)(3) | 110,010 | 81,678 | 34.7 % | |
Net income attributable to New Oriental | 62,182 | 7,100 | 775.8 % | |
Non-GAAP net income attributable to New Oriental (2)(3) | 87,760 | 98,083 | -10.5 % | |
Net income per ADS attributable to New Oriental - basic | 0.40 | 0.04 | 791.3 % | |
Net income per ADS attributable to New Oriental - diluted | 0.39 | 0.04 | 793.6 % | |
Non-GAAP net income per ADS attributable to New Oriental - basic (2)(3)(4) | 0.56 | 0.62 | -8.9 % | |
Non-GAAP net income per ADS attributable to New Oriental - diluted (2)(3)(4) | 0.55 | 0.61 | -9.6 % | |
(in thousands US$, except per ADS(1) data) | FY2026 | FY2025 | % of | |
Net revenues | 5,661,294 | 4,900,262 | 15.5 % | |
Operating income | 643,251 | 428,250 | 50.2 % | |
Non-GAAP operating income (2)(3) | 737,568 | 554,228 | 33.1 % | |
Net income attributable to New Oriental | 475,172 | 371,716 | 27.8 % | |
Non-GAAP net income attributable to New Oriental (2)(3) | 571,106 | 517,071 | 10.5 % | |
Net income per ADS attributable to New Oriental - basic | 3.01 | 2.29 | 31.2 % | |
Net income per ADS attributable to New Oriental - diluted | 2.97 | 2.28 | 30.4 % | |
Non-GAAP net income per ADS attributable to New Oriental - basic (2)(3)(4) | 3.62 | 3.19 | 13.3 % | |
Non-GAAP net income per ADS attributable to New Oriental - diluted (2)(3)(4) | 3.57 | 3.17 | 12.8 % | |
(1) Each ADS represents ten common shares. The |
(2) GAAP represents Generally Accepted Accounting Principles in |
(3) New Oriental provides non-GAAP financial measures on net income attributable to New Oriental, operating income and net income per ADS attributable to New Oriental that exclude share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, (gain) /loss from fair value change of investments, (gain) /loss from equity method investments, impairment of long-term investments, impairment of goodwill, (gain) /loss on disposals of investments and others, as well as tax effects on non-GAAP adjustments. For further details on these adjustments, please refer to the section titled "About Non-GAAP Financial Measures" and the tables captioned "Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures" set forth at the end of this release. |
(4) The Non-GAAP net income per ADS attributable to New Oriental is computed using Non-GAAP net income attributable to New Oriental and the same number of shares and ADSs used in GAAP basic and diluted EPS calculation. |
Operating Highlights for the Fourth Fiscal Quarter Ended May 31, 2026
Michael Yu, New Oriental's Executive Chairman, commented, "We are pleased to conclude the final quarter of fiscal year 2026 on a strong note, with continued healthy top line growth of
Chenggang Zhou, New Oriental's Chief Executive Officer, added, "This fiscal quarter, we continued to execute our strategy of disciplined capacity expansion – one that over the full year has demonstrated remarkable effectiveness in balancing revenue growth with operational efficiency. Equally important, AI has become a central organizational priority, and we have advanced its adoption with clear execution and measurable progress. We further enhanced our OMO teaching system and deepened AI integration across our education ecosystem – embedding AI into existing offerings, refining AI‑powered products, and deploying AI to boost operational efficiency and support for our teaching staff. Together, these efforts position us well for sustained long-term competitive advantage. For FY2026, East Buy continued to offer products under its "Three Highs" standards – safety, quality, and cost performance – backed by reliable service. It launched 11 new Douyin vertical accounts, expanding its channel matrix to 18, with coverage spanning food, fresh produce, nutrition, and more niche categories. It also upgraded its live streaming system and introduced talent recruitment initiatives, supplier summits, and user feedback mechanisms to strengthen its ecosystem. Looking ahead to FY2027, East Buy will expand offline experience stores via New Oriental's learning centers, accelerate private label development, refine membership operations, and improve supply chain efficiency – all in service of driving sustainable long-term growth."
Stephen Zhihui Yang, New Oriental's Executive President and Chief Financial Officer, commented, "Despite one-time costs and expenses arising from our internal management restructuring this quarter, we still delivered year over year expansion in Non-GAAP operating margin. This achievement was primarily driven by enhanced operational efficiency, improved utilization within our educational business, and the solid top- and bottom-line performance of East Buy. For the quarter, Non-GAAP operating margin reached
Update on Shareholder Return for the Fiscal Year 2026
In October 2025, the Company announced that, pursuant to its previously adopted three-year shareholder return plan, the board of directors had approved an ordinary dividend of
Additionally, as part of the shareholder return for the fiscal year 2026, the Company also announced in October 2025 a share repurchase program, under which the Company is authorized to repurchase up to
Shareholder Return for the Fiscal Year 2027
To implement its three-year shareholder return plan adopted in July 2025 for the fiscal year 2027, the board of directors of the Company has approved an ordinary cash dividend and a new share repurchase program.
The aggregate amount of the cash dividend for the fiscal year 2027 is expected to be approximately
Pursuant to the share repurchase program for the fiscal year 2027, the Company may repurchase up to
Financial Results for the Fourth Fiscal Quarter Ended May 31, 2026
Net Revenues
For the fourth fiscal quarter of 2026, New Oriental reported net revenues of
Operating Costs and Expenses
Operating costs and expenses for the quarter were
- Cost of revenues increased by
25.9% year over year toUS .$717.3 million - Selling and marketing expenses increased by
23.9% year over year toUS .$262.5 million - General and administrative expenses increased by
13.2% year over year toUS .$463.9 million - Impairment of goodwill was nil, compared to
US in the same period of the prior fiscal year.$60.3 million
Total share-based compensation expenses, which were allocated to related operating costs and expenses, decreased by
Operating Income / Loss and Operating Margin
Operating income increased to
Operating margin for the quarter was
Net Income and Net Income per ADS
Net income attributable to New Oriental for the quarter was
Non-GAAP Net Income and Non-GAAP Net Income per ADS
Non-GAAP net income attributable to New Oriental for the quarter, excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, (gain)/loss from fair value change of investments, loss/(gain) from equity method investments, impairment of long-term investments, impairment of goodwill, loss/(gain) on disposals of investments and others, as well as tax effects on non-GAAP adjustments, was
Cash Flow
Net operating cash inflow for the fourth fiscal quarter of 2026 was approximately
Balance Sheet
As of May 31, 2026, New Oriental had cash and cash equivalents of
New Oriental's deferred revenue, which represents cash collected upfront from customers and related revenue that will be recognized as the services or goods are delivered, at the end of the fourth quarter of fiscal year 2026 was
Financial Results for the Fiscal Year Ended May 31, 2026
For the fiscal year 2026 ended May 31, 2026, New Oriental reported net revenues of
Operating income was
Operating margin for the fiscal year 2026 was
Net income attributable to New Oriental for the fiscal year 2026 was
Non-GAAP net income attributable to New Oriental, excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, (gain) /loss from fair value change of investments, loss from equity method investments, impairment of long-term investments, impairment of goodwill, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments, for the fiscal year 2026 was
Outlook for the Full Year of FY2027
New Oriental expects total net revenues in the fiscal year 2027 (June 1, 2026 to May 31, 2027) to be in the range of
This forecast reflects New Oriental's current and preliminary view, which is subject to change. The forecast is based on the current USD/RMB exchange rate, which is also subject to change.
Conference Call Information
New Oriental's management will host an earnings conference call at 8 AM on July 29, 2026,
Please register in advance of the conference, using the link provided below. Upon registering, you will be provided with participant dial-in numbers, and unique personal PIN.
Conference call registration link:
https://register-conf.media-server.com/register/BIffe9352b170044a4b248e41d134aed08.
It will automatically direct you to the registration page of "New Oriental FY2026 Q4 Earnings Conference Call" where you may fill in your details for RSVP.
In the 10 minutes prior to the call start time, you may use the conference access information (including dial in number(s) and personal PIN) provided in the confirmation email received at the point of registering.
Joining the conference call via a live webcast:
Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org.
Listening to the conference call replay:
A replay of the conference call may be accessed via the webcast on-demand by registering at https://edge.media-server.com/mmc/p/pdsxxtdn first. The replay will be available until July 29, 2027.
About New Oriental
New Oriental is a provider of private educational services in
For more information about New Oriental, please visit http://www.neworiental.org/english/.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the
About Non-GAAP Financial Measures
To supplement New Oriental's consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as non-GAAP financial measures by the SEC: net income excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, (gain)/loss from fair value change of investments, loss/(gain) from equity method investments, impairment of long-term investments and goodwill, loss/(gain) on disposals of investments and others, as well as tax effects on non-GAAP adjustments; operating income excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and impairment of goodwill; operating margin excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and impairment of goodwill; and basic and diluted net income per ADS and per share excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, loss/(gain) from fair value change of investments, loss/(gain) from equity method investments, impairment of long-term investments and goodwill, loss/(gain) on disposals of investments and others, as well as tax effects on non-GAAP adjustments. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.
New Oriental believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding from each non-GAAP measure certain items that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to New Oriental's historical performance and liquidity. New Oriental believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP measures is that they exclude from each non-GAAP measure certain items that have been and will continue to be for the foreseeable future a significant recurring expense in its business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
Contacts
For investor and media inquiries, please contact: | |
Ms. Rita Fong | Ms. Sisi Zhao |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(In thousands) | |||
As of May 31 | As of May 31 | ||
2026 | 2025 | ||
(Unaudited) | (Audited) | ||
USD | USD | ||
ASSETS: | |||
Current assets: | |||
Cash and cash equivalents | 1,821,202 | 1,612,379 | |
Restricted cash, current | 179,103 | 180,724 | |
Term deposits, current | 919,492 | 1,092,115 | |
Short-term investments | 2,372,290 | 1,873,502 | |
Accounts receivable, net | 36,991 | 33,629 | |
Inventory, net | 105,803 | 80,884 | |
Prepaid expenses and other current assets, net | 389,132 | 307,902 | |
Amounts due from related parties, current | 7,742 | 6,567 | |
Total current assets | 5,831,755 | 5,187,702 | |
Restricted cash, non-current | 96,185 | 24,030 | |
Term deposits, non-current | 447,295 | 355,665 | |
Property and equipment, net | 880,068 | 767,346 | |
Land use rights, net | 57,191 | 54,900 | |
Amounts due from related parties, non-current | 12,645 | 12,464 | |
Long-term deposits | 56,434 | 48,815 | |
Intangible assets, net | 7,773 | 13,020 | |
Goodwill, net | 46,558 | 43,832 | |
Long-term investments, net | 383,063 | 388,481 | |
Deferred tax assets, net | 105,271 | 97,932 | |
Right-of-use assets | 854,358 | 793,842 | |
Other non-current assets | 13,424 | 17,470 | |
Total assets | 8,792,020 | 7,805,499 | |
LIABILITIES AND EQUITY | |||
Current liabilities: | |||
Accounts payable | 126,942 | 80,484 | |
Accrued expenses and other current liabilities | 937,749 | 830,583 | |
Dividend payable | 93,413 | - | |
Income taxes payable | 203,531 | 167,881 | |
Amounts due to related parties | 88 | 405 | |
Deferred revenue | 2,242,946 | 1,954,464 | |
Operating lease liability, current | 285,016 | 255,997 | |
Total current liabilities | 3,889,685 | 3,289,814 | |
Deferred tax liabilities | 14,094 | 14,174 | |
Unsecured senior notes | - | 14,403 | |
Operating lease liabilities, non-current | 563,825 | 533,376 | |
Total long-term liabilities | 577,919 | 561,953 | |
Total liabilities | 4,467,604 | 3,851,767 | |
Equity | |||
New Oriental Education & Technology Group Inc. | 3,986,323 | 3,661,873 | |
Non-controlling interests | 338,093 | 291,859 | |
Total equity | 4,324,416 | 3,953,732 | |
Total liabilities and equity | 8,792,020 | 7,805,499 | |
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. | |||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(In thousands except for per share and per ADS amounts) | |||
For the Three Months Ended May 31 | |||
2026 | 2025 | ||
(Unaudited) | (Unaudited) | ||
USD | USD | ||
Net revenues | 1,529,532 | 1,243,155 | |
Operating cost and expenses (note 1) | |||
Cost of revenues | 717,311 | 569,872 | |
Selling and marketing | 262,518 | 211,906 | |
General and administrative | 463,906 | 409,752 | |
Impairment of goodwill | - | 60,299 | |
Total operating cost and expenses | 1,443,735 | 1,251,829 | |
Operating income/(loss) | 85,797 | (8,674) | |
Gain/(Loss) from fair value change of investments | 2,962 | (458) | |
Other income, net | 15,374 | 19,022 | |
Provision for income taxes | (25,379) | (1,535) | |
(Loss)/Gain from equity method investments | (5,780) | 2,982 | |
Net income | 72,974 | 11,337 | |
Net income attributable to non-controlling interests | (10,792) | (4,237) | |
Net income attributable to New Oriental Education & | 62,182 | 7,100 | |
Net income per share attributable to New Oriental-Basic | 0.04 | 0.00 | |
Net income per share attributable to New Oriental-Diluted | 0.04 | 0.00 | |
Net income per ADS attributable to New Oriental-Basic | 0.40 | 0.04 | |
Net income per ADS attributable to New Oriental-Diluted | 0.39 | 0.04 | |
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. | |||
RECONCILIATIONS OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES | |||
(In thousands except for per share and per ADS amounts) | |||
For the Three Months Ended May 31 | |||
2026 | 2025 | ||
(Unaudited) | (Unaudited) | ||
USD | USD | ||
Operating income/(loss) | 85,797 | (8,674) | |
Share-based compensation expenses | 22,711 | 28,636 | |
Amortization of intangible assets resulting from | 1,502 | 1,417 | |
Impairment of goodwill | - | 60,299 | |
Non-GAAP operating income | 110,010 | 81,678 | |
Operating margin | 5.6 % | -0.7 % | |
Non-GAAP operating margin | 7.2 % | 6.6 % | |
Net income attributable to New Oriental | 62,182 | 7,100 | |
Share-based compensation expenses | 21,173 | 27,174 | |
(Gain)/Loss from fair value change of investments | (2,962) | 458 | |
Amortization of intangible assets resulting from | 931 | 878 | |
Loss/(Gain) from equity method investments | 5,780 | (2,982) | |
Impairment of long-term investments | - | 4,865 | |
Impairment of goodwill | - | 60,299 | |
Loss/(Gain) on disposals of investments and others | 163 | (184) | |
Tax effects on Non-GAAP adjustments | 493 | 475 | |
Non-GAAP net income attributable to New Oriental | 87,760 | 98,083 | |
Net income per ADS attributable to New Oriental- | 0.40 | 0.04 | |
Net income per ADS attributable to New Oriental- | 0.39 | 0.04 | |
Non-GAAP net income per ADS attributable to New | 0.56 | 0.62 | |
Non-GAAP net income per ADS attributable to New | 0.55 | 0.61 | |
Weighted average shares used in calculating basic | 1,560,309,964 | 1,587,987,886 | |
Weighted average shares used in calculating | 1,582,646,432 | 1,602,366,310 | |
Net income per share - basic | 0.04 | 0.00 | |
Net income per share - diluted | 0.04 | 0.00 | |
Non-GAAP net income per share - basic | 0.06 | 0.06 | |
Non-GAAP net income per share - diluted | 0.06 | 0.06 | |
Notes: | |||
Note 1: Share-based compensation expenses (in thousands) are included in the operating cost and expenses as | |||
For the Three Months Ended May 31 | |||
2026 | 2025 | ||
(Unaudited) | (Unaudited) | ||
USD | USD | ||
Cost of revenues | 243 | 477 | |
Selling and marketing | 2,310 | 1,275 | |
General and administrative | 20,158 | 26,884 | |
Total | 22,711 | 28,636 | |
Note 2: Each ADS represents ten common shares. | |||
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(In thousands) | |||
For the Three Months Ended May 31 | |||
2026 | 2025 | ||
(Unaudited) | (Unaudited) | ||
USD | USD | ||
Net cash provided by operating activities | 518,749 | 399,122 | |
Net cash used in investing activities | (332,125) | (88,292) | |
Net cash used in financing activities | (152,720) | (98,477) | |
Effect of exchange rate changes | 25,789 | 15,503 | |
Net change in cash, cash equivalents and restricted cash | 59,693 | 227,856 | |
Cash, cash equivalents and restricted cash at beginning | 2,036,797 | 1,589,277 | |
Cash, cash equivalents and restricted cash at end of | 2,096,490 | 1,817,133 | |
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. | |||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(In thousands except for per share and per ADS amounts) | |||
For the Year Ended May 31 | |||
2026 | 2025 | ||
(Unaudited) | (Audited) | ||
USD | USD | ||
Net revenues | 5,661,294 | 4,900,262 | |
Operating cost and expenses (note 1) | |||
Cost of revenues | 2,568,167 | 2,183,291 | |
Selling and marketing | 855,864 | 783,959 | |
General and administrative | 1,594,012 | 1,444,463 | |
Impairment of goodwill | - | 60,299 | |
Total operating cost and expenses | 5,018,043 | 4,472,012 | |
Operating income | 643,251 | 428,250 | |
Gain/(Loss) from fair value change of investments | 10,613 | (10,078) | |
Other income, net | 76,685 | 118,212 | |
Provision for income taxes | (196,111) | (146,294) | |
Loss from equity method investments | (17,777) | (14,257) | |
Net income | 516,661 | 375,833 | |
Net income attributable to non-controlling interests | (41,489) | (4,117) | |
Net income attributable to New Oriental Education & | 475,172 | 371,716 | |
Net income per share attributable to New Oriental-Basic | 0.30 | 0.23 | |
Net income per share attributable to New Oriental- | 0.30 | 0.23 | |
Net income per ADS attributable to New Oriental-Basic | 3.01 | 2.29 | |
Net income per ADS attributable to New Oriental-Diluted | 2.97 | 2.28 | |
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. | |||
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES | |||
(In thousands except for per share and per ADS amounts) | |||
For the Year Ended May 31 | |||
2026 | 2025 | ||
(Unaudited) | (Unaudited) | ||
USD | USD | ||
Operating income | 643,251 | 428,250 | |
Share-based compensation expenses | 88,466 | 59,933 | |
Amortization of intangible assets resulting from | 5,851 | 5,746 | |
Impairment of goodwill | - | 60,299 | |
Non-GAAP operating income | 737,568 | 554,228 | |
Operating margin | 11.4 % | 8.7 % | |
Non-GAAP operating margin | 13.0 % | 11.3 % | |
Net income attributable to New Oriental | 475,172 | 371,716 | |
Share-based compensation expenses | 84,257 | 54,829 | |
(Gain) /Loss from fair value change of investments | (10,613) | 10,078 | |
Amortization of intangible assets resulting from | 3,627 | 3,581 | |
Loss from equity method investments | 17,777 | 14,257 | |
Impairment of long-term investments | - | 4,865 | |
Impairment of goodwill | - | 60,299 | |
Gain on disposals of investments and others | (1,353) | (345) | |
Tax effects on Non-GAAP adjustments | 2,239 | (2,209) | |
Non-GAAP net income attributable to New Oriental | 571,106 | 517,071 | |
Net income per ADS attributable to New Oriental- | 3.01 | 2.29 | |
Net income per ADS attributable to New Oriental- | 2.97 | 2.28 | |
Non-GAAP net income per ADS attributable to New | 3.62 | 3.19 | |
Non-GAAP net income per ADS attributable to New | 3.57 | 3.17 | |
Weighted average shares used in calculating basic net | 1,578,483,794 | 1,619,727,518 | |
Weighted average shares used in calculating diluted | 1,595,505,635 | 1,631,137,164 | |
Net income per share - basic | 0.30 | 0.23 | |
Net income per share - diluted | 0.30 | 0.23 | |
Non-GAAP net income per share - basic | 0.36 | 0.32 | |
Non-GAAP net income per share - diluted | 0.36 | 0.32 | |
Notes: | |||
Note 1: Share-based compensation expenses (in thousands) are included in the operating costs and expenses as | |||
For the Year Ended May 31 | |||
2026 | 2025 | ||
(Unaudited) | (Audited) | ||
USD | USD | ||
Cost of revenues | 909 | (1,261) | |
Selling and marketing | 4,228 | 4,658 | |
General and administrative | 83,329 | 56,536 | |
Total | 88,466 | 59,933 | |
Note 2: Each ADS represents ten common shares. | |||
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(In thousands) | |||
For the Year Ended May 31 | |||
2026 | 2025 | ||
(Unaudited) | (Audited) | ||
USD | USD | ||
Net cash provided by operating activities | 1,027,080 | 896,592 | |
Net cash used in investing activities | (457,701) | (93,428) | |
Net cash used in financing activities | (380,153) | (584,971) | |
Effect of exchange rate changes | 90,131 | 9,836 | |
Net change in cash, cash equivalents and restricted cash | 279,357 | 228,029 | |
Cash, cash equivalents and restricted cash at beginning of | 1,817,133 | 1,589,104 | |
Cash, cash equivalents and restricted cash at end of period | 2,096,490 | 1,817,133 | |
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SOURCE New Oriental Education and Technology Group Inc.